Low prices could stick around for the next few years. Researchers at the University of Missouri say large global stocks are helping suppress prices across the board.
“Yeah, we’ve had a lot of supplies globally right now. And unless there’s something, a big change of the demand side of the picture, ordinary weather conditions around the world the next several years would lead to continue large supplies. Obviously, we’re going to have some weather shocks the like in the near term, so we don’t know which year will be a good year, which will be might be a bad year. On average, we think current prices are more or less reflective of the current market situation,” said Dr. Pat Westhoff.
Westhoff says considering the current situation, there is not real need for farmers to consider acreage shifts for next year.
Farmdoc economist estimates 2024 colony stock losses at roughly $175 million, with rebuilding and renovation costs near $161 million.
China’s soybean buying is shifting hard toward Brazil, leaving U.S. shipments at risk of slowing as South America’s record crop reaches export channels
For dairy producers, that could help support fluid milk use in cafeterias, breakfast programs, and other child nutrition settings.
EU simplification may reduce some paperwork, but U.S. exporters still face costly traceability requirements.
Lower wheat production, smaller stocks, and higher projected prices explain the rally and put more attention on Plains crop conditions.
U.S. grain export inspections stayed solid for the week ending May 7, with corn still leading the export pace and soybeans posting a strong weekly rebound.
